Saving for a house deposit can seem impossible, but with the right approach, it’s absolutely achievable.
Whether you’re planning to buy your first home in the next few months or a few years, here are practical strategies to help you reach your goal.
✅ 1. Set a Realistic Goal
Start by calculating how much you’ll need. The typical deposit for a home is 10-20% of the property’s value. However, first-time buyers can sometimes find deals with lower deposits, such as 5%.
Example:
For a £200,000 home, a 5% deposit would be £10,000. Aim for a figure that’s doable but still a stretch – pushing yourself to save a bit more will give you extra confidence when the time comes.
✅ 2. Open a High-Interest Savings Account
Keeping your savings in a regular savings account is fine, but if you want to speed up the process, consider opening a high-interest or fixed-rate savings account.
Look for accounts that offer the best interest rates to maximise your savings over time. If you have time on your side, consider setting up a Lifetime ISA (LISA), which allows you to save up to £4,000 a year with 25% government bonus on your contributions, up to £1,000 per year.
✅ 3. Create a Budget and Stick to It
Tracking your spending is essential. Create a realistic budget to see where your money is going each month, and identify areas where you can cut back. Consider limiting non-essential spending – like eating out or subscription services.
The money saved can then be put directly toward your deposit. Small sacrifices now can have a huge impact later.
✅ 4. Set Up Automatic Transfers
Make saving easier by setting up automatic transfers into your savings account every payday. Start small, even £50 per month, and increase it as you go. The key is consistency.
You can also round up your daily purchases to the nearest pound and save those small amounts into a savings pot. Over time, these “micro-savings” can add up!
✅ 5. Consider Additional Income Streams
If your main job isn’t enough to meet your deposit goal, consider ways to boost your income. This could be through freelancing, side gigs, or even selling unused items from around the house.
Any extra cash you make can go straight into your savings, helping you reach your target faster.
Start Today for Your Dream Home Tomorrow
Saving for a deposit doesn’t have to be daunting. With small, consistent changes, you’ll be able to reach your goal. Begin with a clear plan, and be mindful of your budget – every pound counts.
For tailored advice on saving for your deposit and the best mortgage options for first-time buyers, contact Your Mortgage Shop today.
